KBC Asset Management N.V. (KBC AM) has announced it entered Shanghai, China's largest industrial city,to find a cooperative partner, and that it hopes a joint fund company can be put into operation early 2006.

"We welcome the permission newly given by the Chinese government to establish holding fund management companies owned by commercial banks," said Stefan Duchateau, president of the KBC AM.

He said KBC AM will have more choices in a Chinese partner since commercial banks have been approved to become involved in fund management markets.

As an important step into China's asset management market, KBC AM has been authorized to open an office in Shanghai. According to its expanding strategy in the country, the company will first enter into retail market by capital-guaranteed funds.

"The Chinese market has a great potential," Duthateau said.

He said he believed KBC AM would gain a lot from its advanced technology, ample experience and the best design for products.

KBC AM, established in June 2000, has its head office in Brussels.